- The liquidators of VBS Mutual Bank have filed court papers seeking to recover payment for a loan taken out by Jacob Zuma
- In 2016, the former president had listed his Nkandla homestead as security on a multi-million-Rand loan
- The now-defunct bank has now taken action against the veteran politician, with his infamous home on the line
Jacob Zuma signed a hefty loan agreement with VBS Mutual Bank to cover repayments for upgrades to his Nkandla homestead in 2016.
The former president defaulted on payments less than two years after entering into the deal, and now the defunct bank's liquidators have filled court papers to get Zuma to cough up the funds.
TimesLIVE reports that Msholozi will have to repay R7.3 million back to the entity's liquidators, according to the papers which they have seen.
The infamous Nkandla homestead had been listed as security on the agreement, noted as the address on the mortgage.
Business Day notes that the veteran ANC politician had fallen into arrears after less than 24 months and, after a letter of demand was sent, made erratic payments that always fell short of the agreed instalments.
Despite promises from his attorneys to make payments in May of this year, the former president remains in arrears to the tune of R558 691.41.
Briefly.co.za reported that VBS had been subjected to what has been dubbed 'The Great Bank Heist', with R1.8 billion looted.
Anoosh Rooplal, charged with liquidating the bank, had revealed that Zuma had only started making payments 18 months after effecting the deal. Rooplal is adamant that those who fail to honour their respective agreements will be taken to task:
“Where clients are in default on their loan repayments and loan obligations, we are following due process to collect all nonperforming loans.”
Brian Shivambu, brother of EFF deputy Floyd Shivambu, has recently been issued with similar court papers which seek to recover the loan he took out at VBS, but failed to honour.
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